Thomas Weisel Partners analyst Matthew Sheerin late Monday upgrades his rating on Jabil Circuit (JBL) to Overweight from Market Weight, lifting his price target to $20, from $18. While noting that the stock is up about 5% since the company posted strong financial results last week, Sheerin contends that the contract electronics manufacturer’s shares “do not properly value the sales and earnings potential over the next two years.” He notes that the stock is still down more than 20% from its March 2010 peak.
Sheerin notes that the stock trades at 8.2x CY 2010 estimates, and 6.9x 2011 estimates, versus a five-year average forward P/E of 12.7x.
JBL on Monday fell 18 cents, to $14.22.
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